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Ivahew [28]
3 years ago
13

Investment X offers to pay you $6,900 per year for 9 years, whereas Investment Y offers to pay you $9,300 per year for 5 years.

a. If the discount rate is 7 percent, what is the present value of these cash flows
Business
1 answer:
Oliga [24]3 years ago
7 0

Answer:

$44,955.10

$38,131.84

Explanation:

Present value is the sum of discounted cash flows

Present value can be calculated using a financial calculator

Investment X

Cash flow each year from year 1 to 9 = $6900

I = 7%

PV = $44,955.10

Investment Y

Cash flow each year from year 1 to 5 = $9300

I = 7%

PV = $38,131.84

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

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In the current year, Oriole Corporation donated a painting worth $30,000 to the Texas Art Museum, a qualified charity. The museu
n200080 [17]

Answer:

$30,000

Explanation:

Oriole Corporation purchased the painting five years ago for $10,000. In the current year, the cost of the same painting is $30,000. Oriole Corporation donated this painting to the Texas Art Museum.

So, Oriole’s charitable contribution deduction is <u>$30,000</u> as the current value of the painting is $30,000.

6 0
3 years ago
"if Washburn achieves the sales target of 2,000 units at the $349 retail price, what will its profit be?"
dybincka [34]

Answer: $370,000

Explanation:

Your question isn't complete as there were some further questions asked before getting to this question.

The profit from 2,000 units at $349 will be:

Profit = Total revenue – Total cost

Total revenue = (P x Q)

= $349 x 2000

= $698000

Total cost = [FC + (UVC x Q)]=

= [$38,000 + ($145 x 2,000)]

=$38000 + $290000

= $328000

Profit = Total revenue - Total cost

Profit = $698000 - $328000

Profit = $370000

5 0
2 years ago
Which of the following activities is not a component of the operating cycle?A)Sale of merchandiseB)Payment of employees' salarie
Sloan [31]

Answer:

B)Payment of employees' salaries

Explanation:

Operating cycle: The operating cycle is that cycle in which the firm makes the collection of cash with respect to the sales and make the payment with respect to the purchase of the inventory

The cycle start from days of inventory outstanding, days of sales outstanding, and days of payable outstanding

In mathematically,  

Operating cycle = days of inventory outstanding + days of sales outstanding - days of payable outstanding

Thus, option B is correct.

8 0
3 years ago
Zoe runs a flower shop. She recently made some changes so that one employee answers phones and completes the order and payment p
ankoles [38]

Answer: E. Task identity

Explanation:

Task identity is the degree/extent to which an employee execute an entire, recognizable piece of work

4 0
3 years ago
Read 2 more answers
What differences and similarities exist between monopolistic competitive firms and perfect competitive firms?
astraxan [27]

Answer:

In perfect competition, the product offered is standardized whereas in monopolistic competition product differentiation is there. In monopolistic competition, every firm offers products at its own price. ... Entry and Exit are comparatively easy in perfect competition than in monopolistic competition.

Explanation:

(hope this helps)

4 0
3 years ago
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